Business Wire 14-Jun-2019 2:52 PM
State Street Corporation (NYSE:STT), (State Street), today announced that it has signed Participant Statements on Climate Risk Disclosures and Carbon Pricing following the "Energy Transition and Care for Our Common Home" summit hosted by the Vatican's Dicastery for Promoting Integral Human Development and the University of Notre Dame.
During the Vatican's second climate change gathering of this kind, State Street's president and chief executive officer, Ron O'Hanley, joined leaders from the investment and oil and gas sectors to discuss effective action to keep global warming below the two degrees centigrade threshold.
"We applaud the Vatican and the University of Notre Dame for bringing together this diverse group to explore constructive ways to transition more quickly and effectively to a cleaner energy world," said O'Hanley. "We endorse the energy companies' call for a market-based carbon pricing mechanism and will work with the companies in which we invest to improve climate-related risk disclosures." This is aligned with the efforts of the Taskforce on Climate-Related Financial Disclosures (TCFD), which State Street joined in 2017.
State Street has long believed that corporate boards have a responsibility to effectively oversee the assessment of material risk to long-term strategy posed by climate change, including the implications of transitioning to a low carbon economy. In 2017, State Street Global Advisors, the asset management business of State Street, called on oil and gas companies to improve the reporting and disclosures related to climate change risk assessment.
Today, State Street Global Advisors is releasing an update [link] on the state of climate-related disclosures in the oil and gas, mining, and utilities sectors, which acknowledges that progress has been made, but notes that there is room for improvement on disclosing how climate risk scenario analysis influences long-term strategy and capital allocation decisions.
"We believe that in many cases climate change poses serious risks to long-term value creation, " said Rakhi Kumar, head of ESG Investments and Stewardship. "We applaud the industry's call for uniform carbon pricing and recommend that all market participants come together to identify baseline carbon pricing that incentivizes meaningful change in a systematic and expeditious manner."
To view the Participant Statement on Climate Risk Disclosure, please see here.
To view the Participant Statement on Carbon Pricing, please see here.
To view Pope Francis's remarks, please see here (in Italian).
To read the University of Notre Dame's and the Vatican's press release, please see here.
About State Street Corporation
State Street Corporation (NYSE:STT) is one of the world's leading providers of financial services to institutional investors, including investment servicing, investment management and investment research and trading. With $32.6 trillion in assets under custody and administration and $2.8 trillion* in assets under management as of March 31, 2019, State Street operates globally in more than 100 geographic markets and employs approximately 40,000 worldwide. For more information, visit State Street's website at www.statestreet.com.
* Assets under management include the assets of the SPDR® Gold ETF and the SPDR® Long Dollar Gold Trust ETF (approximately $33 billion as of March 31, 2019), for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.
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